FOR IMMEDIATE RELEASE
May 7, 2007

HARBOR GROUP INTERNATIONAL SELLS TWO DOWNTOWN BALTIMORE OFFICE BUILDINGS

Affiliates of Harbor Group International, L.L.C. (HGI), based in Norfolk, Virginia, have sold the Mercantile Bank & Trust Building, a 22-story office tower in downtown Baltimore, and 10 East Baltimore, a 16 story office tower in downtown Baltimore to USA Realty Fund, a Separate Account managed by The Union Labor Life Insurance Company for $78.925 million.

HGI acquired the 404,088 square foot Mercantile Bank & Trust building in December 2004 for $51.25 million. Built in 1970, the property is located in Baltimore’s central business district. The property is 100 percent occupied, with 216,828 square feet leased to Mercantile Bank & Trust on a long term lease and 140,649 square feet leased to Venable LLP, a Washington based law firm.

HGI acquired the 168,668 square foot 10 East Baltimore property in September 2004 for $16.4 million. Built in 1973, the property benefits from an excellent location in Baltimore’s central business district. The property is 97 percent occupied, and is leased to a diverse array of state government, engineering and real estate tenants.

“We determined that market conditions were favorable for reducing our holdings in the downtown Baltimore market,” said Jordan E. Slone, Chairman of HGI. “We are pleased with the performance of both properties and look forward to continued investment in the downtown Baltimore market through our ownership of 7 St. Paul.”

In January 2003, HGI acquired 7 St. Paul Street, a 25-story Class A office tower anchored by Wachovia bank. Whiteford, Taylor & Preston, a Baltimore based law firm, occupies 89,000 square feet.

Harbor Group International, L.L.C. holds an investment portfolio in excess of $1.8 billion, including over 6 million square feet of office space throughout the United States and the United Kingdom, and more than 12,000 apartment units in the U.S.  The Company maintains offices in Norfolk, New York, Chicago, London, and Tel Aviv.  For more information, visit www.harborgroupint.com.